Player Consequences: Why We Subscribe
Filed under: Business models, MMO industry, Opinion, Player Consequences

It's not that gamers are overly fond of the subscription model. Indeed a lot of console and FPS gamers specifically avoid MMOs because of monthly fees. This hasn't stopped game developers from continually using the subscription model though. Despite all the different payment models being explored by industry, the subscription model continues to be the most popular for AAA titles. There seems to be an underlying notion in the west that subscribing to a MMO is still the most beneficial payment method for the consumer. If you look at the history of early MMOs it's not hard to see how this notion was formed.
MUDs and MMOs back in the early days of online gaming followed the same payment model that Internet Service Providers used. Namely, gamers were charged an hourly rate based on the amount of time they played the game. Some games like the first incarnation of Neverwinter Nights charged tremendously expensive rates that were around six dollars an hour. Still the technology was so exciting and new that gamers waited in queues to pay the outrageous prices. Thankfully, the demand for email eventually drove ISPs to switch to a monthly subscription plan and the fledgling MMO market decided to follow suit. With history like that, it is easy to see why some people still think of subscriptions as the best "deal".
It also doesn't help that the biggest competitor to the subscription model is often portrayed negatively by developers of AAA titles. The micro-transaction model is favored by smaller companies that don't have the large scale budgets of the big name studios. Since this payment model depends on the base game being free it often attracts a large number of players. Most of these players aren't paying anything, but the micro-transactions allow the hardcore ones to pour money into the game and support its development. More traditional MMO publishers that already have a large playerbase paying a monthly subscription would lose money on the micro-transaction model.
Thus you can see why a developer's attitude towards micro-transactions often depends on if their company has a hit subscription based game. That's not to say that some of the accusations thrown at the micro-transaction model don't have a kernel of truth to them. In particular, no one has yet used micro-transactions to support a game that compares to AAA titles in quality and graphics. Instead most games that use micro-transactions tend to have very low end graphics comparable to games like Runescape or MapleStory. Those that do have a more modern look are often poorly designed with a tendency towards grindy gameplay.
Plus, there exists a unfavorable comparison between micro-transactions and arcades of the past. Almost an entire generation of early video game design was influenced by the need to get players to spend quarters. This influence can still be seen in many modern games that are stuck using archaic design elements like "lives". There's a fear that micro-transactions could do the same thing and influence developers to make content that requires buying more items rather than improving the actual gameplay. A corresponding problem is that some players are distrustful of small fees and suspect it might lead to being nickled and dimed to death.
There's a big difference between the western and eastern MMO markets and acceptance of the micro-transaction model is just a small part of it. Overall, the western market seems to favor a payment model, which does not put the burden of budgetary concerns on the player. Players like knowing how much the game is going to cost each month so they don't have to worry about keeping track of a running total. The eastern market on the other hand seems to prefer being able to control how much money they spend each month. They also enjoy the ability to move between games without having to commit to a subscription.
If anything is challenging the dominance of the subscription model in the west it's because players desire the ability to switch between games without committing to monthly fees. A lot of other alternative payment methods besides micro-transactions are being developed to meet this growing demand. In particular, the highly successful Guild Wars charges no monthly fees and players can pick it up and put it down without feeling as if they are wasting money. Guild Wars makes all their money on box sales and provides new content in the form of expansions. It still has a high cost to pick up the game, but it requires no commitment from new players.
Other games use the same free to play method as the micro-transaction model, but also offer a premium account subscription. The free to play version usually has less content and might put other constraints on the player. However, it still draws in millions of people since there is no commitment to try the free to play version. The hardcore players and those who really like the game tend to pick up the premium subscription. Runescape has used this method for a while and even supplements its revenue by displaying advertisements in the free to play portion of the game.
I think this payment method is the one the western market will slowly move towards in the future. The micro-transaction model is always going to be around, but it has a lot of baggage attached to it. Most players still prefer the subscription model, but they also want to be able to try out new games without committing to costly fees. The tiered subscription model fits both of these desires and has had a lot of success with games like Dofus and Runescape. It all really depends on someone making a high quality game that uses a different payment model though. After all the main reason why we subscribe is because, all the best games require subscriptions.

















Reader Comments (Page 1 of 1)
Tony said on 12:11PM 8-20-2008
You're definitely right about AAA developer/publisher discussion of micro-transactions. I think they've almost gotten a lot of people to compare them to a nickel-and-dime situation and they aren't always necessarily like that. They've almost equated official channels of doing this to someone selling a rare weapon on eBay.
I think some of my concern with the concept was always the idea of it killing balance. We're all on a similar playing field with a subscription based game... but with a microtransaction based game that becomes a lot more complex. Certainly giving the ability to buy whatever you want evens that out some, but the developer has to consider what the effects are on the people who bought something else.
I think there's room to do that well, but frankly, most of the games using this method could really use a hell of a lot more polish and attention before I'd be confident in that being handled properly.
I've tried a few out recently that were decent. ArchLord was one of the better ones, I felt.
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koehler83 said on 2:13PM 8-20-2008
I like the subscription model for the same reason I like all my bills in lump sums. I use it as much as I want and I never have to worry about breaking the bank. I know exactly what I'll pay any given month, regardless of what may happen in the game. It also allows a level playing field among players.
The microtransaction model just sucks. It punishes the 'hardcore' or committed fanbase of a game by sponging off them while the less committed offer up nothing. It punishes the less monetarily endowed players by forcing them to sacrifice something, somewhere.
If you can't make a game worthy of a flat monthly fee, then you're in the wrong arena. Either everyone pays the same amount or everyone pays nothing at all. Those are you only two choices.
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Matt said on 4:27PM 8-20-2008
Koehler83 wrote:
If you can't make a game worthy of a flat monthly fee, then you're in the wrong arena. Either everyone pays the same amount or everyone pays nothing at all. Those are you only two choices.
Really? There are FAR more people playing games that do not operate on either of the principles above than people who are playing games that do.
For instance, the only million+ population game I can think of in which everyone pays the same amount is WoW. On the other hand, Runescape, Club Penguin, Habbo, Maple Story, essentially every MMO in Asia, all the Aeria games, all the Acclaim games, etc do not make people pay the same amount. They either offer tiered subscriptions in which some people pay nothing and others pay something or they offer virtual asset sales.
Clearly, the choice you're presenting is a false one.
Ivan the good said on 12:55PM 8-20-2008
But you are forgetting how highly successful Guild Wars is and people still play it. If they could have kept up the expansion system development wise I think they might have had a viable system.
That was not possible however and ArenaNet has said they are looking into more of a expansion route for which a consistent development cycle can be maintained. I personally believe that if they can keep a 6 month cycle going they can keep retain even the most hardcore player in the game for the game and its mechanics were some of the best in the industry and instance haters be damned.
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Earnest Dodge said on 5:42PM 8-20-2008
I would never even check out a game that uses RMT instead of a monthly fee. No interest. Why would any hardcore player choose a system that penalizes them for their passion?
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Relmstein said on 6:44PM 8-20-2008
There's a lot of different payment models being thrown around and it should be interesting to see if any besides the subscription model takes off. I know the micro-transaction model often gets large numbers of players, but they often make much less money then other games. I think the tiered subscription model like Dofus or Runescape has a better chance of catching on.
There is definitely a growing desire from players to be able to try out new games without droping money on a box and a monthly commitment. The only bad thing about the standard subscription model is that it really ties a player to only one or two games.
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Teiraa said on 9:51PM 8-20-2008
Actually I am in favour of the lifetime-subscription model in LotRo (combined with monthly subscriptions for short-term players). Monthly subscriptions are fine if you are playing a lot, but with a lifetime subscription you can manage your play time more freely: You are too busy (or bored) to play right now? No problem, just take a break of a couple weeks, and come back whenever you want, without having to worry about paying subscriptions.
Also you never get the feeling that you level your characters and in future will have to pay subscription fees just to logon and seem them in action.
And this is a win-win situation for both the players and the company: Lifetime subscribers guarantee an active playerbase for a long time, which is an important way to attract new players over time.
It's alright if lifetime fees are a bit higher (like $200 or $300), but I hope that more games will use this feature. For me it is a deciding factor why I stick to LotRo right now.
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Mythic said on 8:09PM 8-21-2008
I agree that the LOTRO lifetime subscription makes sense, and is a better deal if you average over 2-3 years. The Puzzle Pirates form of microtransaction works great for a more casual game, too! (PP also offers a subscription model...)
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